=+The initial investment consists of £70,000 in machines, which have a zero scrap value at the end of the three-year life of the project and £20,000 in additional working capi-

tal which is recoverable at the end. The discount rate is 10 per cent.

Required

à

Draw a sensitivity graph showing the sensitivity of NPV to changes in the following:

- sales price;

- labour costs;

material costs;

discount rate.